Sony Just Set A Terrible Precedent, One That Will Embolden Every Hacker On The Planet And Haunt Corporations For Years

Sony blew it Wednesday by pulling "The Interview" from theaters
without coming up with an alternative way to distribute the
movie.

There was a big opportunity to at least announce that the "The
Interview" would premiere online instead of in theaters. But by
completely caving to demands, Sony has emboldened other hackers
to harass companies with the expectation of similar results.

And while the Department of Homeland Security said it probably
wasn't credible, it's not worth the risk of the hackers or a
sympathizer making good on that threat. It would've taken just
one incident for everyone to start pointing fingers and howling
at the theaters for not doing enough to preempt that kind of
violence.

Still, Sony had a big opportunity to stick it to the hackers and
come out on top. It could've said it would release the movie
online through its own streaming service Crackle. It could also
distribute it through Netflix, Hulu, Vudu, iTunes, or any one of
the other online video services. The movie would reach more
people and could potentially make more money than it would have
made in theaters. (The buzz around the whole hacking thing would
help too.)

But that's not what Sony is doing.

Instead, Sony has decided to shelve the movie and not distribute
it at all, in any form. Some members of the press
got to see it early. It also leaked on some file-sharing
sites, but it's illegal to download it. Everyone else is out of
luck. You'll have a better chance finding a copy of the elusive
"Star Wars Holiday Special" than seeing "The Interview" this
Christmas.

There's no good reason for Sony to do this other than protect
itself from a bunch more embarrassing emails leaking out. That's
not a good enough reason, and it sets a dangerous precedent.
Hacker groups now know they can bring a major corporation to its
knees just by threatening leaks on the same level as the one Sony
experienced over the last few weeks. A Sony spokesperson declined
to comment.

Sony's decision has already had a ripple effect through the
industry.

On Wednesday, New Regency
scrapped plans for a movie starring Steve Carrel that takes
place in North Korea.

On Thursday, Paramount told theaters to stop playing "Team
America." Like "The Interview," "Team America" also satirizes
North Korea and then-dictator Kim Jong Il. It came out over 10
years ago, but Paramount appears to be playing it safe by sending
a message to hackers that it doesn't want to be hacked either.

Sony had one chance to make everything right and potentially beat
the hackers at their own game by releasing the film online to a
massive audience. Instead, Sony blew it and gave the hackers even
more power than they had before.